Sunrun, Comcast team up to market residential solar systems

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Dive Brief:

Sunrun and Comcast have teamed up to market and sell residential solar systems.

Under the 40-month agreement, Sunrun will serve as the exclusive residential solar energy provider for Comcast Cable, and Comcast Cable will serve as one of Sunrun’s strategic partners through marketing campaigns in selected markets.

Comcast plans to begin marketing Sunrun’s solar services to its customers on a selective basis later this year.

Dive Insight:

Faced with the prospects of slowing residential solar sales, solar companies are looking for new ways to reach customers.

According to Q2 2017 U.S. Solar Market Insight report from GTM Research and the Solar Energy Industries Association, new residential solar capacity in California, the biggest state for solar power, fell by 22% from fourth-quarter 2016 to first-quarter 2017.

Signs of a slowdown began to appear last year, and companies such as SolarCity have adapted by abandoning door-to-door sales. Of course, SolarCity merged with Tesla and is using Tesla’s market reach to leverage its solar sales. And companies like Vivint Solar have their Vivint Smart Home affiliate, which sells residential security systems. But independent solar companies had to look outside the fold to find new marketing channels.

In the deal with Comcast, Sunrun will pay the telecommunications company a fee for new customers they bring in. Comcast is also eligible to earn a warrant of up to 9.99% of Sunrun’s outstanding common shares. The warrant is earned pro rata only after Sunrun installs 30,000 customers under the agreement, and is fully earned only after Sunrun installs 60,000 customers under the agreement.

The deal between Sunrun and Comcast follows a one-year solar pilot-program in which Comcast sold Sunrun’s BrightSave offering.

“Our challenge is making homeowners aware that they can save money with solar today. We are excited to work with Comcast to help their customers go solar and save on their electric bills while reducing their dependence on fossil fuels,” Lynn Jurich, Sunrun CEO said in a statement.